Mckinsey & Co. Managing Knowledge and Learning Essay

1016 Words Nov 8th, 2012 5 Pages
Michelle Abbott Professor Jon Down December 10, 2002 Written Case Analysis

McKinsey & Company: Managing Knowledge and Learning Evaluating Gupta’s Four Pronged Plan

Rajat Gupta has recently inherited a fast-growing consulting firm with a strong knowledge base and a competitive market position. In order to ensure the future success of McKinsey & Company, however, Gupta faces a number of challenges: he must provide outstanding services to an increasingly sophisticated clientele, offer his employees ongoing education and upwardly mobile career paths, continually enhance McKinsey’s reputation as a leader in the consulting field, and, perhaps most significantly, continue to leverage his company’s knowledge base across divisions while still
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Gupta should not pursue knowledge sharing without a thorough evaluation of its costs and benefits, however, as well as careful discussion about how knowledge sharing can be implemented most efficiently. While information sharing in an industry such as consulting is of utmost importance, it is an expensive practice. Each time information is documented and shared throughout the company – through whatever medium – costs are incurred, both in labor hours and material resources. There must be a comparable, tangible benefit to sharing information: namely, the knowledge must be usable to the recipient. If the knowledge is not useable to the recipient, sharing it is probably not costeffective. Additionally, Gupta might also reexamine McKinsey’s commitment to unity in terms of cost-effectiveness. Is it efficient, in other words, to insist on continually sharing knowledge and information resources throughout the firm, or would it be wiser to simply allow some of the fragmentation that is occurring naturally as the company grows and diversifies? As the centers of competence and clientele sectors develop, perhaps some
Source: The St. Martin's Handbook, 5th edition, by Andrea A. Lunsford (Bedford/St. Martin's, 2003)

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would be more efficiently run as autonomous sub-units or even spin-off companies. With good strategy, these sub-units and spin-off companies might even still be able to optimize the parent

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